Nuevo Midstream Expands Processing and Gathering Services in the
Delaware Basin of West Texas and Southeast New Mexico; Equity
Commitments to Nuevo Reach $308 Million

Ramsey Gas Gathering System reaches 210 miles of high and low
pressure pipeline

El Paso interconnect complete

Nuevo to gather crude oil in the Delaware Basin

Equity commitments to Nuevo reach $308 million

January 17, 2013 02:00 PM Eastern Standard Time

HOUSTON--(BUSINESS WIRE)--Nuevo
Midstream, LLC (“Nuevo”) announced today that the company has
completed the Phase II expansion of the company’s natural gas gathering,
processing and treating system in the Delaware Basin near Orla, Texas.
Headquartered in Houston, Nuevo is a full service midstream company
serving crude oil and natural gas producers in the Delaware Basin.
Operations are focused on production from the Bone Springs and Wolfcamp
formations and the Avalon Shale trend in southeast New Mexico and West
Texas.

Known as Ramsey II, Nuevo’s new cryogenic processing plant is now online
at the company’s Ramsey processing site in Reeves County, Texas. The
plant has the capacity to process 100 million cubic feet per day
(MMcf/d), bringing current processing capacity at the Ramsey site to 110
MMcf/d. Drilling projections from numerous existing and potential
customers, the strong performance of wells in the basin and additional
acreage dedications have prompted Nuevo to plan construction of a third
cryogenic processing plant, which is currently being manufactured by Cameron
using Randall Gas NGL-Max® Technology. Nuevo expects to bring the Ramsey
III plant online in early 2014, bringing total cryogenic processing
capacity to 310 MMcf/d. In addition to the processing expansion, Nuevo
has increased amine treating capacity at the Ramsey plant to 625 gallons
per minute (gpm) and will make significant additions to the plant’s
treating capacity within the year to meet customer requirements.

In addition to the natural gas produced from the shallow Delaware sands,
Nuevo also processes natural gas produced from five other distinct
resource plays located in the Delaware Basin. As producers in the Ramsey
area continue to define the extent of each play and as drilling programs
evolve, Nuevo will explore a fourth expansion to the Ramsey site, which
could add an additional 200 MMcf/d in processing capacity as early as
2015.

Gas Gathering System Reaches 210 Miles, Nuevo to Gather Crude Oil

In connection with the expansion of the Ramsey natural gas processing
site, Nuevo has completed numerous natural gas gathering projects
bringing its Ramsey Gas Gathering System to 210 miles of high and low
pressure lines. Nuevo has also completed a second interconnect to the El
Paso Natural Gas pipeline system.

The company further announced that it will offer crude oil gathering
services to producers in the Delaware Basin. Nuevo is planning an
aggressive build-out of a crude oil gathering system that will
complement the company’s expanding gas gathering system and will provide
deliveries into several long-haul crude pipelines. Nuevo’s expansion
into crude gathering reflects the company’s commitment to customer
service and should provide its gas producers with an attractive
alternative to their current practice of trucking crude from tank
batteries to injection points. The company expects to begin construction
on the first phase of its crude system in the second quarter of 2013
with this system coming on line in the third quarter of 2013.

Equity Commitments to Nuevo Reach $308 Million

Nuevo has secured additional private equity commitments from EnCap
Flatrock Midstream of San Antonio, management and others, bringing
total equity financing support for the company to $308 million. Nuevo
was formed in 2011 with a $65 million commitment from EnCap Flatrock
Midstream’s first fund, management and others. Nuevo has increased its
capital commitments three times since its formation, with the most
recent increase totaling $167 million. EnCap Flatrock Midstream Fund II
was the largest participant in Nuevo’s most recent capital increase.

CEO Perspective

“We are pleased to announce another set of important company milestones
– the significant expansion of Nuevo’s processing and treating capacity,
further expansion of our gathering footprint, a second El Paso
interconnect, the offering of crude services, and a considerable
increase in equity capital commitments to Nuevo,” said Jay Lendrum,
Nuevo Midstream’s president and CEO. “We are also pleased to announce
plans to further increase our processing and treating capacity in
response to customer dedications and well performance. Area producers
are having success in multiple zones in our immediate area and their
drilling plans require additional midstream infrastructure to fully
develop these resource plays. The additional plant capacity, service
offerings, and capital will enable us to continue to respond to our
customers’ increasing demands for midstream services in the Delaware
Basin.”

About Nuevo Midstream, LLC

Headquartered in Houston and formed in April 2011, Nuevo is a full
service midstream company offering gathering, compression, processing,
treating, transportation and marketing services to oil and gas producers
in the Delaware Basin. Operations are focused on production from the
Bone Springs and Wolfcamp formations and the Avalon Shale trend in
southeast New Mexico and West Texas. The senior leadership group at
Nuevo Midstream has more than 150 years of energy industry experience
and is led by President and CEO Jay Lendrum; Randy Ziebarth, vice
president and general manager; Chris Work, chief financial officer;
Dwight Serrett, vice president of engineering and construction; and
Ralph Carthrae, vice president of marketing. Visit www.nuevomidstream.com
for more information.